Nikkei edges lower on stronger yen, Sony weighs

* Sony weighs as profit outlook seen optimistic

* Tokyo stocks seen undervalued compared to global peers

* Tech shares outperform on strong Nasdaq

By Ayai Tomisawa

TOKYO, March 27 (Reuters) - The Nikkei stock average edged
lower on Friday as optimism over a rise in U.S. stocks was
offset by concerns about a stronger yen, while Sony Corp
fell after its earnings outlook undershot analysts'
forecasts.

Analysts said the market may lack direction and trade around
the psychologically important 9,500 level for the next few days
after positive news this week, such as launches of investment
trusts, has already been priced in.

Sony, which is struggling with the aftermath of the
earthquake and a series of network security breaches, fell 2.4
percent to 2,185 yen. The consumer electronics maker on Thursday
predicted an 80 billion yen ($975 million) net profit for the
current financial year, turning around from a massive loss in
the year just ended but missing analysts' consensus of 105
billion yen.[ID:nL3E7GQ0UW]

"Its forecasting a profit gain is positive, but the figure
was worse than what the market had expected," said Naoki
Fujiwara, a fund manager at Shinkin Asset Management.

The benchmark Nikkei was down 0.4 percent at
9,523.57 in midmorning trade, while the broader Topix
shed 0.2 percent to 825.13.

But Fujiwara said bargain hunting is likely to support the
market between 9,500 and 9,600 as Tokyo shares are relatively
undervalued.

Shares on the Tokyo stock exchange's main board are trading
at book value, while stocks in the S&P 500 trade at 2.2
times their book value and Hong Kong shares are at 1.8 times,
according to Thomson Reuters Starmine.

Tech shares outperformed the market, buoyed by gains in the
U.S. Nasdaq on Thursday. Toshiba Corp rose 0.7 percent
to 424 yen and Hitachi Ltd added 1.1 percent to 456
yen.

But carmakers were lower, with Toyota Motor falling
0.5 percent to 3,340 yen and Honda Motor shedding 0.7
percent to 3,075 yen.

The dollar had recently recovered above the 82 yen mark but
was down at 81.14 yen early on Friday.

(Editing by Chris Gallagher)